The AI Trade and Implied Liquidity Preferences: A Macrostructure Perspective

The following has been excerpted and enhanced from Alphacution's case study, "US Equity Market Macrostructure Evolution: The Temple of Financial Fantasy." The implied liquidity preferences by a plurality - and possibly a majority - of institutional equity investors have taken control of the narrative known more commonly as the "AI trade." Today, a short list of proprietary trading firms are stepping up to facilitate their diversification (and exit) from this distributed concentration - at the expense of retail traders (and institutional brokers) - before it's too late...